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Insurance Trends in 2022: What to Watch For

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Competitive Edge Insurance is a commercial insurance brokerage that specializes in hard-to-place risks. This includes businesses that are in chaos or crisis with high-risk exposures such as construction and development, property investors and flippers, and those with excess losses or claims.

In 2022, we’re observing a noticeable change in favor of insurance buyers. In turn, we are optimistic for many segments of the commercial lines market in the coming year. Welcome to “Insurance Trends in 2022: What to Watch For.”

Let’s dive in.

From Pandemic to Endemic

“Adaptation is a profound process.  Means you figure out how to thrive in the world.” —John Laroch

As we well know, COVID-19 is an ongoing issue. In fact, variants have led many to expect that COVID-19 is here to stay.

Regardless, the sentiment, at least in the insurance industry, has shifted from uncertainty to adaptation.

For the past 10 quarters, rate increases have averaged 10%. Capital in the reinsurance market has increased by 30% which provides support against a large loss event, catastrophe, economic turmoil, and/or adverse claims.

In 2022, we recommend insurees proceed with caution. Additionally, we anticipate price increases to slow. Please note, however, the word “slow” in this sentence. Increases are expected to slow, not create a downward trend in pricing.

Today’s World of Insurance: An Overview

As we know, the past 18 months have been nothing short of eventful. This considered, what are we observing in the insurance world today? Here are a few elements.

  • Catastrophic Losses Continue
  • Social Inflation
  • Skilled Labor Shortages
  • Supply Chain Disruptions

Did you know that according to a study from the Society for Human Resource Management, nearly 90% of businesses are having a hard time filling open positions?

Next, let’s dive into each insurance sector a bit deeper: cyber, commercial property, auto, and workers’ compensation.

Cyber Insurance

When it comes to cyber insurance, premiums are rising but covering less.

What’s Causing Insurance to Increase?

  • Cyber extortion jumped by 150% in a year
  • Companies are more likely to rely on outside attorneys to handle cyber response (in order to contain potential lawsuits)
  • Every claims category has increased in the past year; cases of malicious breaches and unintentional disclosure increased by 18%
  • Cyber coverages are expected to rise sharply, 40% to 50% for optimal risks and 50% to 100% or more for less optimal risks, seeing as ransomware attacks continue to crowd the cyber insurance market

Additionally, executives do not have the knowledge to properly insure their companies from cyber risk. Here are some statistics from Munich RE to paint a picture for you:

  • “81% of C-level respondents think their company is not adequately protected against cyberthreats
  • 35% are considering taking out an insurance policy and will very likely do so
  • Only 34% of C-level respondents have been in contact with their insurers
  • One out of four C-level respondents was totally unaware of the opportunities that cyber solutions offer
  • 17% of C-level respondents still do not have an overview of the cyber insurance products on the market”

The bottom line? C-level executives, while they may be concerned about cyber threats, do not have an understanding of what insurance products and services are available to them.

Commercial Property

What Elements Are Driving Rates?

  • Increasing frequency of natural catastrophes, as well as the severity of those events
  • Higher rebuilding costs due to price inflation of materials and labor shortages

Today, however, commercial property markets are stabilizing. Additionally, increased rates are slowing while capacity is increasing.

We can also anticipate more favorable terms for clients who mitigate risk. Property owners who have been working hard to mitigate risk and decrease claims can see more favorable terms and conditions, and possibly lower rates.

This benefits commercial insurance buyers that maintain quality risks with strong data to back them up. However, rates will continue to be impacted by the location of the risk.

Companies in areas at high risk of natural catastrophes, such as tornadoes, hurricanes, hailstorms, and wildfires, are seeing the highest rate increases, as well as non-renewals and even difficulty in securing coverage. For example, in wildfire areas of California and wind zones of Florida, rates have increased by over 20%.

Auto Insurance

Rates have gone up and up. But what’s driving the increase?

What’s Causing Auto Insurance Rates to Increase?

  • An increasing amount of accidents and deaths caused by distracted driving
  • Higher medical costs for accident victims
  • Rapidly climbing repair costs for vehicles exacerbated by the disrupted supply chain for parts and paucity of skilled and trained labor

As a result, we expect to see averages of 5-15% increases in both commercial and personal auto insurance in 2022.

Workers’ Compensation Insurance

Workers’ compensation is a mixed bag.

There’s a base that’s put into play by The Workers’ Compensation Insurance Rating Bureau of California (WCIRB), which is our rating and statistical bureau for data. The WCIRB gives us the trends and where to go.

The state fund has announced rate increases, the 2022 WCIRB new policy assessment increase sits at 5.9318%.

Beginning January 1, 2022, new assessment levels took effect for the six workers’ compensation surcharges administered by the California Department of Industrial Relations (DIR). The six will total 5.9318% in 2022, compared to 3.9590% in 2021.

For more information on rate increases between 2021 and 2022, visit the graph below.

How Can You Prepare?

Let’s talk about risk management.

First things first, review your policies before they expire!

It is estimated that commercial properties were undervalued for underwriting purposes by more than 30% in November 2021 policies annually.

To rectify undervaluation, more frequent, in-depth property risk appraisals—that take into account more extreme weather events, potential supply chain hurdles, and inflation trends—are recommended.

Second, write your own story. Don’t let the underwriters do it for you! Work with your insurance broker and risk representative to take appropriate steps to reduce your risks whenever possible. This will make you more attractive to underwriters.

Below is simply an outline of factors that owners can address to influence the most favorable underwriting profile, which leads to the most favorable terms, conditions, and pricing:

  • Take inventory of assets
  • Pinpoint current exposures and cost drivers
  • Update contracts to the current environment
  • Review existing risk management techniques
  • Highlight business continuity plans and loss control measures in place
  • Build a company culture focused on safety
  • Manage claims efficiently
  • Be weather-ready

Additionally, to reduce negative consequences from supply chain crunches and labor shortages in the aftermath of a catastrophe, “risk managers and property owners should consider entering agreements with builders before an event occurs to ensure the availability of materials and manpower for the restoration job.”

Underwriters are more critical now than ever on property, asking in-depth questions on what you’re doing to control your risks; not only to employees but to tenants and visitors.

Read on for more on how to prepare as well as what to expect from workers’ compensation policy renewals this year.

How Small Businesses Fall Victim to Cyber Attacks

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Here’s a case study that details why it’s a problem, and how your business can prevent becoming the victim of a cyber attack.

What is Phishing?

Phishing is an ever-growing concern defined as the “technique for attempting to acquire sensitive data, such as bank account numbers, through a fraudulent solicitation in email or on a website, in which the perpetrator masquerades as a legitimate business or reputable person.”

According to Brenda Jo Robyn, founder of Competitive Edge Insurance, phishing is “any activity that compromises your organization’s security.” For more on phishing, read our article: “Why Is Phishing the #1 Thing Killing Small Businesses?”

Why Is Phishing a Problem?

Let us provide an example of the dangers of phishing.

On February 5, 2021, “a plant operator for the city of about 15,000 on Florida’s west coast saw his cursor being moved around on his computer screen,” according to The Pew Charitable Trusts. The cursor continued to move, “opening various software functions that control the water being treated [and boosting] the level of sodium hydroxide—or lye—in the water supply to 100 times higher than normal.”

If you didn’t know, the consequences of this breach could have been deadly if not caught immediately, as lye poisoning can result in:

  • Burns
  • Vomiting
  • Severe pain
  • Bleeding

While most cases might not involve the extremes of lye poisoning, this example shows the severity of phishing today. As a result, governments, states, businesses (big or small), and individuals should act accordingly to strengthen their cybersecurity.

Why Do Data Thieves Focus on Small Businesses?

The consequences of a cyber attack on a small business are particularly severe. In fact, 60% of small businesses that have been hit by a cyberattack end up shutting down within six months of the attack.

Despite the irreversible aftermath of falling victim to a cyber attack and the fact that 43% of online attacks are now aimed at small businesses, CNBC reports that only 14% are prepared to defend themselves.

Interested in some more statistics?

Cyber attacks are not only extremely expensive to recover from but they also damage your business’s reputation, productivity, and can even be dangerous in the event of personal data being stolen.

This is why it is crucial to protect your small business from cyberattacks. But how can you protect yourself? What can the Florida case study teach us?

How Can You Prevent Phishing?

Training

  • Training your employees: To be vigilant; educate them on common phishing traps, email scamming tactics, and how to send data securely (In the Florida case study mentioned earlier, the employee who noticed the breach reported it immediately)
  • Training IT: To know what to look for

Be sure to document your training and review it on a weekly or quarterly basis with your employees and staff.

Due Diligence

According to Security Scorecard, cybersecurity due diligence is “the process of identifying and addressing cyber risks across your network ecosystem.” Doing so provides “insights into potential gaps in network security so that they can be addressed before they are exploited by cybercriminals.”

For those who are interested in seeing where their business is at in terms of safety, read on to learn how you can measure your company’s cybersecurity risk.

Have a Planned Crisis Response in Place

When it comes to cyber risk, there’s nothing worse than being ill-prepared. Of course, we couldn’t write about cyberattacks without mention of investing in a cyber liability insurance policy for your business.

A cyber liability policy might include:

  • Data Breach Coverage
  • Business Interpretation Loss Reimbursement
  • Cyber Extortion Defense
  • Forensic Support
  • Legal Support
  • Coverage beyond a General Liability Policy

As a small business, it’s important you be prepared—because the consequences can be insurmountable. For more details, visit our full blog post on phishing or connect with our team today.

Why is Phishing the #1 Thing Killing Small Businesses?

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What is phishing? And no, we’re not talking about the activity of catching fish for food or sport. Phishing, spelled with a ‘ph,’ is an ever-growing concern defined as the “technique for attempting to acquire sensitive data, such as bank account numbers, through a fraudulent solicitation in email or on a web site, in which the perpetrator masquerades as a legitimate business or reputable person.”

But why is phishing especially harmful to small businesses? Why are they being targeted? We have all the answers and more, thanks to Brenda Jo Robyn, founder of Competitive Edge Insurance.

So, welcome to ‘Why is Phishing the #1 Thing Killing Small Businesses?’ We hope you stick around to learn something new, including how you might protect yourself as a small business owner.

What is Phishing?

Today, phishing can come in a variety of forms. According to Brenda Jo, phishing is “any activity that compromises your organization’s security… It can come in the way of an email or a text or an application.” These applications that retrieve your data can be on your computer, phone, even your iPad. Scammers target you and ask questions to get your information in really creative ways.

An Example of Phishing

Let’s say you receive an email that you’ve been expecting from Bank of America. Why not just ignore it? Well, because…

“It looks like you really should open it. [After all,] it’s a secure document for the bank you’ve been working with lately,” says Brenda Jo. The culprits know you’ve been waiting for this specific type of document to arrive in your inbox because they’ve been screening your emails. 

“So, now they have captured that you’re working with this bank and now this bank is sending you a secure document that you need to open… You open it out of their Google docs, and all of a sudden, bam, you got a worm or a virus on your computer,” says Brenda Jo.

“That’s going to either start going through all your files and looking for stuff. They’re gonna track your emails or they’re going to track your keystrokes.”

Phishing is huge right now. Brenda Jo continues. “I can’t stress enough how important it is to make sure that your computers and data is secure from others. There are a lot of what are called ‘bad elements’ or ‘bad actors’ out there that are trying to steal your data… Right now data is money. And the more data you have, the more money you can make.”

How Dangerous is Phishing for Small Businesses?

The statistics speak for themselves. Right now, 60% of small companies that have been hit by a cyber attack are closing their doors within six months. The reason? It is very costly to come back from a cyber attack.

Most small businesses don’t have the collateral, backing, or lines of credit to make themselves whole again after an attack of this caliber.

How Can Small Businesses Protect Themselves from Phishing?

Training

Focus on training.

  • Training your employees: (For example, they need to know how not to send excel spreadsheets emails! Instead, create a zip file or convert the document into a PDF. Why? It is very easy to scrape data from an excel file while in an email.)
  • Training IT: They need to know what to look for.

Due Diligence

Due diligence is the bare minimum. Document your training and go over it on a weekly or quarterly basis. Next, ensure your IT systems are multi-layered. This means not only having firewalls on your computers and servers but also helpful, educated IT personnel available.

Develop a Planned Crisis Response

A planned crisis response includes a cyber liability policy. As Brenda Jo says, “one of the things that kills the small business is the lack of PR or response to their clients and/or vendors when a phishing attack occurs and data has been compromised.”

“It’s very expensive to go and let everybody know, ‘Hey, your information was taken and here’s the year’s worth of credit monitoring’”—especially if the data is health-related. 

You might face both federal fines as well as fines from the state government. The costs add up, and that’s where cyber liability comes in to help.

Reach Out to Competitive Edge Today

As you look at your coverage, think of the potential for cybersecurity issues, evaluate your tolerance for risk, and take the time to look at your policies in detail. As experts, we at Competitive Edge can tell you where you are vulnerable and what the risk might cost you. It is then your decision to accept the risk or mitigate it with coverage. You know what we would do.
Interested in learning more about the dangers of ransomware and why the need for cyber liability coverage is increasing? Read on in cyber liability coverage for the new era of ransomware.

How does Workers’ Compensation Insurance Work?

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Picture this scenario: You’re at a construction site and a worker falls off the roof and falls and breaks their leg onto floor tiles, also breaking the tiles. What would be covered in that situation, the leg or the tiles? 

What is Workers’ Compensation Insurance?

Workers’ compensation insurance are policies that provide medical benefits and wage compensation to workers injured on the job, in exchange for eliminating their right to file a lawsuit against their employer’s negligence.

Workers’ compensation benefits are designed to help employees if they are unable to work, cover medical expenses, as well as other expenses and rehabilitation costs associated with disability or illness. As you look to explore workers’ compensation options, it’s important to look for one that provides adequate coverage and compensation for your employees.

When you invest in a properly designed policy, it ensures you and your employees remain financially secure. It’s also important to look at the specific benefits that are offered within your policy. Typical workers’ compensation insurance policies cover medical benefits.

So, the worker’s comp covers the worker’s injury for falling off the roof. 

What is Covered with Workers’ Compensation Insurance?

Specific workers’ compensation laws vary depending on your state; however, the most common compensation states that require workplace injury insurance include the following:

  • Payment for lost wages
  • Vocational rehabilitation
  • Permanent disability
  • Temporary disability
  • Medical costs and treatment 

Bonds 

One helpful way to understand this scenario is knowing the difference between performance and payment bonds.

Payment Bonds

In simple terms, a payment bond enforces that everything must be paid once a project is completed. Payment bonds are also surety bonds and are required for most state projects based on the Miller Act. 

The Miller Act was passed by the U.S. General Services Administration Public Buildings Service (GSA) with the intention to explain how payment bonds protect subcontractors and suppliers.

The GSA responds to any reports of nonpayment, following the legal action needed and protected by the Miller Act. The GSA states that “the Miller Act requires that prime contractors for the construction, alteration, or repair of Federal buildings furnish a payment bond for contracts in excess of $100,000.” 

Payment bonds additionally play a major role in construction. As an insurance company, we have relationships with carriers who understand the specifics of construction risk and can provide better solutions, better prices, and more comprehensive coverage—even for hard-to-place and high-risk companies.

Performance Bonds 

The main differentiator between payment and performance bonds is that a performance bond ensures the employer is satisfied with the job. While both are surety bonds, performance bonds can be helpful in industries apart from construction. 

A performance bond, according to Investopedia, “ensures the completion of a project. Setting these two together provides the proper incentives for laborers to provide a quality finish for the client.” 

Any type of bonding will cover e tiles or building materials that were broken.

Overview

If an employee falls off the roof and hurts their leg and breaks the tile, the  Workers comp covers the worker’s injury for falling off the roof. Bonding covers the broken tiles from his attempt not to fall off the roof. 

The first step is to show us under the hood so we can help you find the right carrier and coverage to protect your business today and always.

Read about Worker’s Compensation for Independent Contractors here. 

World Polio Day

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Competitive Edge’s very own CEO, Brenda Jo Robyn has a passion for charitable giving. Because of Brenda Jo’s previous career as an Epidemiologist who specialized in immunizations, she places special attention on Polio research. As October 24 is World Polio Day,  we wanted to get Brenda Jo’s insight into what World Polio Day really means to her. 

What World Polio Day Means to Brenda Jo:

“I belong to the rotary club of Coronado and one of the things that I specifically work on is a fundraiser called End Polio Now, which raises funds to immunize children across the globe. 

Over the last few years, we have raised $2.1 billion to protect over 3 billion children and 122 countries from Wild Polio Viruses, two have been eradicated, and one is still active. And the only countries in which Polio exists in the wild are Pakistan and Afghanistan. This year, we only had two reported cases in January. However, between 2018 and 2020, there hasn’t been as much access to services for families and children. And in those two countries in 2020, there was a three-month break from providing immunizations due to COVID-19. 

They couldn’t go around and go from town to town and, and tried to tribe. Due to recent events, it has become increasingly challenging in Afghanistan and the immunization locations have been closed down. There’s a big concern right now on how this will play out and affect the future. 

Currently, there’s an estimate of 3 million children that remain, un-immunized. And why is this a concern? Well, it can lead to an outbreak. Refugees are being accepted in countries all over the world, and we don’t know who is immunized and who is not immunized as they come. We really have to focus on those children as they’re coming in and treat them all as if they are not immunized.”

Understanding World Polio Day

World Polio Day is an effort to draw attention to the End Polio Now organization working to eradicate the wild poliovirus in both Afghanistan and Pakistan, as well as increase immunizations in countries that are at greater risk, like Africa. 

In order to eradicate the wild poliovirus, high-quality immunization campaigns must be carried out to polio-affected and high-risk countries. Rotary has played a huge role in contributing to Polio eradication. 

What is Rotary?

Brenda Jo is a part of the Rotary Club, which provides her with various opportunities to connect and give back to the community at large. 

“Rotary is a global network of 1.2 million neighbors, friends, leaders, and problem-solvers who see a world where people unite and take action to create lasting change–– across the globe, in our communities, and in ourselves.”The main goal of Rotary is to serve others in the form of charitable works, giving, and time. Brenda Jo loves being a part of Rotary as it gives her the opportunity to make a real difference in the world. If she can impact just one life in a positive way, it is all worth it.

What Factors Reduce My Commercial Insurance Premiums?

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Do you know the in’s and out’s of commercial insurance? Test your premium knowledge by taking the quiz below!

Which of these will reduce my Commercial insurance premiums?

Need some more help after taking that quiz? Read more about the four types of insurance you should have for your business here!

Bundling Insurance: Pros and Cons

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If you’ve ever seen a Geico or Progressive commercial, you have probably heard the term “bundling insurance” thrown around, but is it actually worth it as a commercial provider? 

Bundling insurance is when you choose to get multiple faucets of insurance through the same company. While it can sometimes save you money, there are potential downfalls as well. 

Pros of Bundling Insurance

For commercial insurance, the pros of bundling your insurance might include: 

Higher Savings 

There are multi-policy discounts that might be applied to your bundled insurance. Depending on the provider and your personal preference, the discount can range anywhere from 5 to 25%.

Less Clutter 

Mehmet Murat Ildan said, “If you have a complex life, make it simple; if you have a simple life, continue it that way!” 

If you’re a small business owner, the concept of a simple life might be long gone—the pursuit of your passion can take up all the hours in the day. This is why finding small ways to declutter your life is crucial to finding balance.

Bundling your insurance might be a small way to organize your life and finances.

Insurance Security 

If you make any claims on one type of insurance but are covered by the same company for another type, you are less likely to be dropped by them.

Cons of Bundling Insurance

Not Always Cheaper

While one of the main draws towards bundling insurance is saving money, there are cases where this isn’t the case. However, this all depends on your history. If you have a poor credit score or traffic violations, this might hinder your chances of getting a higher discount for bundling (likely in the 5% range compared to 20%). 

You’re Stuck

If you choose to bundle your insurance through the same company, there isn’t a ton of room to look for other rates. If you’re bundling your insurance through the same company, they might raise your rates without much room for discussion.

Keep in Mind

If you do feel like bundling your insurance, there are some guidelines you can follow to ensure you understand what you’re getting into (even though there are short and long-term benefits of bundling).

  • Evaluate all third-party options
  • Compare quotes
  • Keep an open mind 

Contact us at Competitive Edge today for information on bundling insurance!

Four Types of Insurance Coverage for your Business

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There are so many options for insurance that it can be overwhelming to know which research steps to take as a business. At Competitive Edge, we help you navigate what coverage best fits you and your business. 

Health and Wellness 

Niche beauty insurance solutions can miss areas of business insurance that might bridge gaps in the event of falls or other general liability claims. With health and wellness insurance, unique situations are bound to arise depending on your business’s current environment and changes. 

The various Health and Wellness sectors that Competitive Edge caters to include: 

  • Beauty 
  • Spa Owners
  • Hair Salon Owners
  • Nail Salon Owners
  • Fitness
  • Yoga Studio Owners
  • Pilates Studio Owners
  • Dance, BarreFit, and Additional Exercise Studio Owners
  • Martial Arts Studio Owners
  • Health
  • Naturopathy Practices
  • Audiologists
  • Speech and Occupational Therapy Centers
  • Alternative Therapy Centers
  • Acupuncturists

To provide you with the right coverage from the right carrier, we need to know about your business. It’s not enough to put all cosmetology companies in one box, all spas in another, and all beauty product companies in yet another pre-planned box.

Cyber Liability

Cyber liability is a growing industry because of the evident rise in technology, and the hacking that comes with progress.

Does this sound like news to you? Don’t worry—we already wrote an article here for you to read about reducing cybersecurity risk. 

It’s important to understand what might be covered under your cyber insurance policy. 

  • Data Breaches
  • Intellectual Property Rights
  • System Failure
  • Damages to a Third-Party System
  • Cyber Extortion
  • Business Interruption

Traditional business liability insurance likely won’t cover any cyver risks associated with your business. 

Bonding

Surety bonds offer an important secondary level of coverage. 

A surety bond is a contract involving three parties. It is a promise to be liable for the debt, default, or failure of another.  These three parties include:

  • The Principal: The party that purchases the bond and undertakes the obligation to perform the act as promised.
  • The Surety: An insurance company that guarantees the obligation to be performed. If the principal fails to perform the act as promised, the surety has a contractual obligation for the losses.
  • The Obligee: The party who requires and receives the benefit of the surety bond.

There are two categories of surety bonds: contract surety bonds and commercial surety bonds.

Contract surety bonds are typically written for construction projects. If a contractor defaults, the surety company is obligated to find another contractor to complete the contract. Another option for the surety company is to compensate the project owner for the financial loss incurred. There are a few bond types of contract surety bonds.

Contract sureties are required during a federal construction contract valued at $150,000 or more. State and municipal governments have similar regulations. Note that contract sureties may also be used with a private owner.

Commercial surety bonds, on the other hand, cover a broader range of surety bonds. These are required of individuals and businesses by federal, state, and local governments.

These bonds can be required by the government to obtain a license. For example, mortgage brokers, contractors, and auto dealers may be required to obtain a license or permit bond. These bonds can also be required to protect various statutes, regulations, ordinances, and other government entities.

General Business Insurance

General business insurance covers areas such as property damage, bodily injury, product liability, libel, slander, and copyright infringement.

Hindsight is no place for general business insurance conversations as lawsuits are a sad reality for many businesses. Just one bodily injury or property damage claim can take away everything you’ve worked so hard to build. General liability insurance provides businesses with coverage for most damages, injuries, medical costs, legal fees, and settlements in the case that you’re being sued.

Construction Insurance

Shock losses from large claims can make it difficult to get affordable insurance in the high-risk field of construction. If your insurance was canceled or non-renewed, we can help. 

Our depth of experience and exemplary reputation with the carriers we work with can find a home for your hard-to-place and high-risk clients can find the right coverage. The fact is, every business can find coverage, you just have to take the time and know where to look. 

The businesses we work with include: 

  • Roofing
  • Construction
  • Commercial Property
  • Commercial Real Estate
  • General Liability (CGL)

Errors and Omissions Insurance

In the CRE industry, agents are at higher risk of being accused of failing to meet a client’s expectations, failing to document decisions or actions, or failing to act in a customer’s best interest. This could be an error on a title or an oversight in a property listing, which could lead to a costly lawsuit. 

Errors and Omissions (E&O) insurance covers against financial losses from lawsuits filed as a result of an agent’s work in the real estate profession. These policies cover liability related to the following issues:

The client may claim that you made an error that led to financial loss. In a lawsuit regarding professional mistakes, you may be at risk of losing big, considering the size of commercial property transactions.

An example of this is when a real estate agent misstates the square footage of a property. If the agent has Errors and Omissions Insurance, however, they may be covered for attorney’s fees, court costs, settlements, judgments, and fines. 

Potential E&O Exclusions

While it’s important to know what E&O insurance covers, it’s also important to understand potential exclusions. Some common exclusions in E&O coverage include claims resulting from dishonest or criminal acts. As well as claims associated with a polluted property. If any agent causes bodily harm or death to another person, or the agent causes damage to someone’s property, their claims will not be covered under E&O insurance. 

In the CRE industry, it’s more common to face a lawsuit related to errors and omissions so it’s best to be covered before you need it. Roger J. Stewart is an expert in providing coverage for real estate professionals and has helped various CRE investors and agents avoid risk and save money throughout the years.

At Competitive Edge Insurance, we work with insurance carriers across the country to place all types of business coverage. We are always seeking out new insurance companies to write hard-to-place and high-risk business insurance. 

Don’t let cancellation dissuade you from finding comprehensive coverage, we can help! 

Contact us today at Competitive Edge to find out more information.

BEWARE: Workers’ Comp Insurance for Independent Contractors

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As you may know, most states require employers to have workers’ compensation insurance. These insurance policies can help recover most of your employee’s lost wages while they recover from a work-related injury or illness.

It also helps to cover your employee’s medical expenses as it provides their family with death benefits if they, unfortunately, pass away.

What is Workers’ Compensation Insurance?

Workers’ compensation insurance are policies that provide medical benefits and wage compensation to workers injured on the job, in exchange for eliminating their right to file a lawsuit against their employer’s negligence.

Workers’ compensation benefits are designed to help employees if they are unable to work, cover medical expenses, as well as other expenses and rehabilitation costs associated with disability or illness. As you look to explore workers’ compensation options, it’s important to look for one that provides adequate coverage and compensation for your employees.

When you invest in a properly designed policy, it ensures you and your employees remain financially secure. It’s also important to look at the specific benefits that are offered within your policy. Typical workers’ compensation insurance policies cover medical benefits.

What is Covered with Workers’ Compensation Insurance?

Specific workers’ compensation laws vary depending on your state; however, the most common compensation states that require workplace injury insurance include the following:

  • Payment for lost wages
  • Vocational rehabilitation
  • Permanent disability
  • Temporary disability
  • Medical costs and treatment 

How to Prepare for Employee Claims

Accidents happen. It’s part of life. It doesn’t matter how safe your business is, there’s always the chance an employee will get sick or injured on the job. For this reason, nearly every state requires business owners to have coverage for their employees. Different states, however, have various regulations. 

Ensure you have an expert on your team to help understand what your specific business needs are. For example, if your business is in California, you are required to obtain workers’ compensation insurance even if your business is as small as just one employee. In Florida, however, you need this coverage if you have at least four employees. 

Signing up for workers’ compensation depends on the location of your business. Typically, states recommend you purchase workers’ compensation insurance through a private insurance company, while others may require you to buy it through a state-run insurance fund.

It’s also important to understand the cost associated with investing in workers’ compensation insurance. The risk associated with your specific business will determine the cost of your insurance payments. This all sounds pricey, but remember: the costs associated with not having workers’ compensation insurance might be the motivation you need to start considering your options.

Without workers’ compensation insurance, you put yourself and your business at risk of fines, and could even face potential jail time for not complying with regulations. If an employee runs into a problem that would have been covered by workers’ compensation insurance, you may be responsible for covering their expenses, and you may also open yourself up to litigation.

What You Need to Know About Workers’ Compensation as an Independent Contractor

Every contractor needs general liability insurance. While the law does not require it, it is considered best practice to ensure against the kinds of injuries and lawsuits general liability is targeted to.

Large contractors may own commercial buildings that require property insurance, where smaller contractors or those with a specialty may need different coverage. 

At Competitive Edge, we don’t claim to know your needs until we talk to you. What’s right for one company may not be a choice that meets your needs. Even if you have suffered a shock loss, large claim, or lawsuit, and find that your options have narrowed, we can work with you.

The first step is to show us under the hood so we can help you find the right carrier and coverage to protect your business today and always. Contact Competitive Edge Insurance today for more information about high-risk coverage today!

Your Guide to Reducing Cybersecurity Risk

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Cyber threats were at an all-time high during 2020. As a large portion of the population transitioned to a work-from-home environment, cyber attackers viewed this new reality as a wonderful opportunity to prey on cyber vulnerabilities. 

According to SonicWall, in 2020, 304.6 million ransomware attacks occurred. As well as 81.9 million crypto hacking attacks, 4.8 trillion intrusion attempts, and 5.6 billion malware attacks. With these statistics in mind, it’s important to start working toward mitigating your cyber risk today. 

Let’s start by understanding what a cybersecurity threat is. 

Cybercriminals target individuals and businesses alike. Cyber hacking ranges in damages– it can be as small as a pesky popup, or as large as malware that destroys your entire organization’s system. Understanding where your business may be at risk is just the beginning. 

As you likely know, data is one of your greatest assets as a business and is becoming increasingly important. Protect your digital assets, and ensure you have the protection needed to ensure the safety of your business and your client’s information. 

Preparing for a cyber attack.

Before an attack

First and foremost, you should put the proper controls in place. These controls may include:

  • Using secure Password-protected networks
  • Avoiding suspicious links
  • Ignoring online requests for private information
  • Password-protecting all devices that connect to the internet
  • Adding variation to your passwords
  • Reporting suspicious activity right when you see it.

You should also ensure your train and inform your employees of the proper protocol to begin mitigating your cyber risk. Employees need to be trained on how to avoid:

  • Email threats: Email is one of the most common ways for hackers to get sensitive information from your employees. Your employees should always verify the sender, never open suspicious attachments, and never click on links if you don’t trust the source. 
  • Spam threats: Ensure your employees know to use their spam filter, flag spam when it appears in your inbox, and know to only give their email to trusted sources.
  • Phishing threats: Employees should know to never offer sensitive information, be aware of potential suspicious links, double-check website addresses, verify who they’re communicating with, and trust their suspicions. 
  • Social Media threats: Employees should be sure to manage their privacy settings on social media, never click on suspicious links that have been shared with them, and think twice before posting and ensure they aren’t sharing information that may be harmful. 

During a cyberattack

In the case that a cyberattack occurs, you need to understand the steps you should take. First and foremost, you must take immediate action. If a problem is found, disconnect your device from the internet and restore your system fully. Lastly, report the incident to your IT Department as soon as possible! 

After a cyberattack occurs

Once you’ve taken the steps listed above, three are a few follow-up steps you should take. 

  • File a report with the local police: Ensure there is a record of the incident.
  • Report to the internet crime-compliant center: Report any identity theft to the Federal Trade Commission.
  • Consider other information: If your personal information was compromised, what else could be at risk? 

Cyber Insurance for Cybersecurity Threats

As you start to consider the potential cyber risks associated with your business, consider investing in Cyber Insurance. It’s important to understand what would be covered under your cyber insurance policy. 

  • Data Breaches
  • Intellectual Property Rights
  • System Failure
  • Damages to a Third-Party System
  • Cyber Extortion
  • Business Interruption

Traditional business liability insurance likely won’t cover the cybersecurity risks associated with your business. 

As cyber threats continue to proliferate, ensure your business remains protected.

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